Microsoft gets a victory in 'Vista' case

Lawsuit won't be class action, judge says

By JOSEPH TARTAKOFF, P-I REPORTER

Updated 10:00 pm, Wednesday, February 18, 2009

A federal judge gave Microsoft Corp. a big boost Wednesday in a long-running lawsuit challenging the company's marketing of some PCs as "Vista Capable" that could run only the most basic version of the Windows Vista operating system.

Judge Marsha Pechman decertified the class-action lawsuit, saying that plaintiffs had failed to show that consumers paid more for PCs with the label than they would have otherwise.

She said an expert witness for the plaintiffs had not been able to quantify a specific change in demand for PCs because of the program and instead had relied on internal Microsoft documents that described the goals of the program.

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"The problem with ... (the expert's) conclusion is that it merely assumes that Microsoft realized its goals. The Court cannot apply an assumption as class-wide proof of causation," Pechman wrote.

But Pechman said that plaintiffs could continue with the suit, on a case-by-case basis.

"This ruling makes no comment on the merits or veracity of Plaintiffs' individual (Consumer Protection Act) and unjust enrichment claims," she wrote. "Defendant is mistaken to equate Plaintiffs' failure to provide class-wide proof of causation with a failure to present an issue for trial."

Pechman denied Microsoft's request to essentially dismiss the case, which was based partially on its contention that it had made clear to consumers what version of Vista the "Vista Capable" PCs could run by distinguishing between the different versions of the operating system.

"Simply put, Microsoft's argument misses the issue," she wrote. "The question is not whether (the most basic version of Vista) can be called 'Vista' based on computer code similarity or whether Microsoft as a software developer has the right to offer multiple permutations of its product; it is whether Microsoft's use of the 'Vista Capable' designation had the capacity to deceive."

Plaintiffs indicated Wednesday they would move ahead with the individual complaints.

Nevertheless, the decertification of the lawsuit lifts a burden for Microsoft, which could have faced major damages in a class-action lawsuit, considering that consumers are estimated to have spent as much as $1.5 billion on PCs with the "Vista Capable" label.

Microsoft applauded Pechman's decision.

"We're pleased that the court granted our motion to decertify the class, leaving only the claims of six individuals," a spokesman said Wednesday. "We look forward to presenting our case to the jury, should the plaintiffs elect to pursue their individual claims."